December Business Journal

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BUSINESS F O R S O U T H W E S T M O N TA N A

JOURNAL

BY LEW IS K E NDA LL

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BUSI N E S S JOU R NA L E DI TOR

Montana employers are prepared to comply with new federal regulations regarding overtime pay, but many say that the proposed change is too much, too fast. At issue is the Fair Labor Standards Act’s exemption of executive, administrative and professional (EAP) employees from overtime wage rules. Under the exemption, employees with a fixed annual salary above $23,660 whose responsibilities included “executive, administrative or professional duties” are not eligible for overtime pay. Following a directive from President Obama, last year the U.S. Department of Labor set about changing the exemption. The result was a new rule, which would more than double the salary threshold under which workers qualify for overtime pay to $47,476 per year. The change would affect 11,000 workers in Montana, adding $2.7 million a year in additional compensation, according to DOL statistics. The rule was set to go into effect on Dec. 1, however, in response to a suit filed by more than a dozen states, a U.S. District Court judge in Texas issued an injunction, effectively bringing the change to a halt. MORE OVERTIME PAGE 4

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A proposed rule change would extend OT pay to millions of employees, IL

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TASTE OF BOZEMAN Clocking in with Aaron Parker, owner of Jam PAGE 3 DECEMBER 20, 2016


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